SPECIAL FEATURE | America’s Energy Revolution: How US data centers are transitioning from fossil fuels to renewables – W.Media

Report on the U.S. Digital Infrastructure’s Alignment with Sustainable Development Goals

The digital infrastructure sector in the United States is undergoing a critical transformation from fossil fuel dependency to renewable energy sources. This shift is imperative for addressing climate change and is aligned with several United Nations Sustainable Development Goals (SDGs). This report analyzes key initiatives, policies, and market trends, with a specific focus on their contribution to SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action).

Energy Sector Transition: Progress Towards SDG 7 and SDG 13

The national energy landscape is shifting significantly towards renewables, a foundational move for achieving climate and clean energy goals. This transition is supported by substantial investment and favorable policy, directly contributing to SDG 7 and SDG 13.

Key Energy Transition Indicators

• Renewable Capacity Growth: In Q1 2025, solar power constituted 69 percent of all new electricity-generating capacity, demonstrating a clear commitment to SDG 7.
• Decline in Fossil Fuels: The U.S. Energy Information Administration (USEIA) projects a decrease in coal production from 512 million short tons (MMst) in 2024 to 467 MMst in 2026, driven by competition from cleaner alternatives.
• Policy-Driven Investment: The Inflation Reduction Act has catalyzed US$ 115 billion in investments into clean energy manufacturing through Q1 2025, fostering sustainable economic growth under SDG 8.
• Record Power Generation: According to the 2025 Sustainable Energy in America Factbook, U.S. power generation reached a two-decade high, propelled by the expansion of renewable energy technologies.

Data Centers: A Critical Driver for Sustainable Infrastructure (SDG 9)

The rapid expansion of the data center industry, fueled by Generative AI and Large Language Models, has created an unprecedented demand for energy. This demand serves as a powerful catalyst for accelerating the transition to renewable energy sources, linking the growth of digital infrastructure (SDG 9) directly to the urgent need for clean energy (SDG 7).

Projected Energy Consumption

• A McKinsey study projects that data centers could consume between 11 and 12 percent of total U.S. power by 2030.
• The International Energy Agency (IEA) warns that the largest data center facilities will consume energy equivalent to over 20 times that of 100,000 households, underscoring the critical need for sustainable energy solutions.

North American Data Center Market and Sustainable Procurement

The North American data center market is experiencing historic growth, creating a capacity crunch that necessitates the most aggressive renewable energy procurement in history. This market environment is shaping the development of sustainable infrastructure in line with SDG 9.

Market Analysis (H1 2025)

1. Market Size: The global data center market is projected to reach US$ 527.46 billion in 2025, with the U.S. accounting for the largest share at US$ 171.90 billion.
2. Low Vacancy: The CBRE North America Data Center Trends report for H1 2025 noted a record-low vacancy rate of 1.6 percent, with primary market supply reaching 8,155 MW.
3. Supply Scarcity: The JLL North America Data Center Report for Midyear 2025 highlighted near-zero colocation vacancy and a construction pipeline of 8 GW that is already 73 percent pre-leased, driving operators toward secondary markets with available power.

Corporate Initiatives Advancing the Sustainable Development Agenda

Leading technology corporations are making substantial investments in renewable energy and sustainable infrastructure, demonstrating a commitment to corporate responsibility (SDG 12) and forming crucial partnerships (SDG 17) to achieve global goals.

Microsoft

• Renewable Energy PPA: Signed a landmark agreement with Brookfield to develop over 10.5 GW of new renewable energy capacity, directly advancing SDG 7 and SDG 17.
• Sustainability Goals: The company’s 2025 Environmental Sustainability Report outlines progress towards being carbon negative, water positive, and zero waste by 2030, contributing to SDG 13, SDG 6 (Clean Water and Sanitation), and SDG 12.
• Carbon-Free Portfolio: Microsoft has contracted 34 GW of carbon-free electricity across 24 countries.

Amazon

• Nuclear Energy Partnership: Expanded its agreement with Talen Energy to procure 1,920 MW of carbon-free nuclear power, diversifying its clean energy portfolio in support of SDG 7.
• Innovation in Infrastructure (SDG 9): The partnership includes exploring the development of new Small Modular Reactors (SMRs).
• Operational Efficiency: The 2024 Amazon Sustainability Report noted a global Power Usage Effectiveness (PUE) of 1.15 for its data centers, showcasing progress in responsible production and consumption (SDG 12).

Meta

• Solar Power Procurement: Signed a Power Purchase Agreement (PPA) with Enbridge for 600 MW of solar energy to power its data centers, a direct contribution to SDG 7.
• Net-Zero Commitment: The agreement supports Meta’s goal to achieve net-zero emissions by 2030 and builds on its achievement of sourcing 100% renewable energy since 2020, aligning with SDG 13.

Google

• 24/7 Carbon-Free Goal: Aims for 24/7 carbon-free energy and net-zero operations by 2030, setting an ambitious standard for SDG 7 and SDG 13.
• Hydropower Agreement: Signed a deal with Brookfield for up to 3,000 MW of hydropower, one of the world’s largest corporate hydro deals and a significant partnership for the goals (SDG 17).
• Solar PPA: Contracted 90 MW of solar energy from ENGIE’s Chillingham Project in Texas to further decarbonize its operations.

Conclusion: A Digitally-Driven Sustainable Energy Future

The immense energy requirements of the AI-driven data center industry have become a primary catalyst for the U.S. energy transition. Massive corporate investments in Power Purchase Agreements and next-generation technologies like SMRs, advanced geothermal, and Carbon Capture, Utilization, and Storage (CCUS) are accelerating the development of a resilient, 24/7 clean energy grid. This synergy between digital innovation and sustainable energy is crucial for achieving the targets outlined in the Sustainable Development Goals, particularly SDG 7, SDG 9, and SDG 13, positioning the digital infrastructure sector as a key enabler of a sustainable future.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy

  The article’s central theme is the transition of the U.S. digital infrastructure industry from fossil fuels to renewable energy sources like solar, wind, hydro, and nuclear power. It discusses increasing the share of renewables in the energy mix and improving energy efficiency, which are core components of SDG 7.

• SDG 9: Industry, Innovation, and Infrastructure

  The text focuses on the digital infrastructure (data centers) and the industry’s role in driving the energy transition. It highlights innovations in clean energy technologies (Small Modular Reactors, geothermal, Carbon Capture) and sustainable infrastructure practices (zero-water cooling, mass timber data centers), directly aligning with SDG 9’s goal of building resilient and sustainable infrastructure.

• SDG 12: Responsible Consumption and Production

  The article addresses the massive energy consumption of the data center industry, particularly with the rise of AI. The efforts by hyperscalers to procure clean energy and improve energy efficiency (e.g., lower PUE) reflect a move towards more sustainable consumption and production patterns, a key aspect of SDG 12.

• SDG 13: Climate Action

  The transition to renewable energy is explicitly framed as a response to “concerns over climate change.” By detailing the shift away from coal, investments in carbon-free energy, and corporate goals to become “carbon negative,” the article directly addresses urgent actions to combat climate change and its impacts, which is the essence of SDG 13.

• SDG 17: Partnerships for the Goals

  The article provides numerous examples of large-scale partnerships between technology companies (Microsoft, Amazon, Meta, Google) and energy providers (Brookfield, Talen Energy, Enbridge, ENGIE). These Power Purchase Agreements (PPAs) are critical mechanisms for financing and developing new renewable energy capacity, showcasing the multi-stakeholder partnerships needed to achieve the SDGs.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 7.2: Increase substantially the share of renewable energy in the global energy mix.

   The article directly supports this target by stating that “solar power accounted for 69 percent of all new electricity-generating capacity added in Q1 2025” in the U.S. It also details massive Power Purchase Agreements (PPAs) by companies like Microsoft (10.5 GW), Meta (600 MW), and Google (over 760 MW) specifically for renewable energy sources like solar, wind, and hydropower.

2. Target 7.3: Double the global rate of improvement in energy efficiency.

   This target is addressed through the discussion of data center efficiency. The article mentions that Amazon Web Services (AWS) achieved a Global Power Usage Effectiveness (PUE) of 1.15, which is better than the industry average. This focus on improving PUE and developing innovations in cooling technology demonstrates a commitment to enhancing energy efficiency.

3. Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable.

   The entire article describes the upgrading of energy infrastructure to support the data center industry sustainably. It mentions hyperscalers investing in “next-generation technologies such as Small Modular Reactors (SMRs), advanced geothermal power, and natural gas facilities with Carbon Capture,” and Microsoft’s use of “mass timber data centers” and “zero-water cooling” as examples of making industrial infrastructure more sustainable and environmentally sound.

4. Target 13.2: Integrate climate change measures into national policies, strategies and planning.

   The article points to the “Incentives from the Inflation Reduction Act” as a key national policy that has attracted “$115 billion invested into US-based manufacturing of clean energy and transportation technologies.” This demonstrates the integration of climate action into national economic policy to drive the transition away from fossil fuels.

5. Target 17.17: Encourage and promote effective public, public-private and civil society partnerships.

   This target is exemplified by the numerous corporate PPAs detailed in the article. The agreement between Microsoft and Brookfield for 10.5 GW of renewable energy, described as “the largest single corporate PPA ever signed,” along with deals between Amazon and Talen Energy, Meta and Enbridge, and Google and Brookfield/ENGIE, are all prime examples of large-scale private-sector partnerships driving sustainable development.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicator for Target 7.2 (Share of renewable energy):

   The article provides several quantitative indicators. The most direct is that “solar power accounted for 69 percent of all new electricity-generating capacity added in Q1 2025.” Other indicators include the specific capacity of renewable energy procured through PPAs, such as Microsoft’s 10.5 GW, Meta’s 600 MW, and Google’s 670 MW of hydropower and 90 MW of solar. The projected decrease in coal production from “512 million short tons (MMst) in 2024 to 467 MMst in 2026” also serves as an inverse indicator of the shift to renewables.

2. Indicator for Target 7.3 (Energy efficiency):

   A specific industry indicator for energy efficiency is mentioned: Power Usage Effectiveness (PUE). The article states that the “Global Power Usage Effectiveness (PUE) for AWS data centers stood at 1.15,” which can be tracked over time and compared against industry averages to measure progress.

3. Indicator for Target 9.4 (Sustainable infrastructure):

   Progress can be measured by tracking CO2 emissions relative to industrial growth. The article implies this by noting that Microsoft’s “operational emissions fell 29.9 percent from 2020” even as the company experienced significant growth, indicating an improvement in the sustainability of its infrastructure and operations.

4. Indicator for Target 17.17 (Partnerships):

   The financial value of partnerships serves as a key indicator. The article mentions the “$115 billion invested into US-based manufacturing of clean energy” spurred by the Inflation Reduction Act, the “$300 billion” hyperscalers are expected to invest in AI and data center infrastructure in 2025, and specific project values like Meta’s “$900 million Clear Fork facility” and Google’s “$3 billion deal with Brookfield.” These figures quantify the scale of investment being channeled through partnerships.

4. Table of SDGs, Targets, and Indicators

Source: w.media